For all integers $n\ge 1$ prove the following statement using mathematical induction.
$$1+2^1+2^2+\ldots +2^n=2^{n+1}-1$$
The first part of the question ask me to prove the base step:
So I set $n=1$ and plugged it in but the answer is not correct (unless I made a silly arithmetic error somewhere).
$2^1=2^{1+1}-1$
$2=2^{2}-1$
$2=4-1$
$2=3$
Am I doing something wrong here?

Your mistake is quite simple: You omitted the initial "$1+\cdots$".
When $n=0$ the identity says $1 = 2 - 1$, i.e. $2^0=2^{0+1}-1$. You can take that to be the base step.